The “World Silver Survey” is the authoritative publication on the silver market. The 2012 edition reports on all aspects of the silver market, including key areas such as demand, supply, investment, and price. Thomson Reuters GFMS produced the “World Silver Survey 2012” on behalf of the Silver Institute, which has been publishing the “Survey” since 1990. Thomson Reuters GFMS is recognized as the world’s leading precious metals markets consultancy.

1. THE SILVER MARKET IN 2011
PHILIP KLAPWIJK
GLOBAL HEAD OF METAL ANALYTICS
The Silver Institute, New York, 16th November 2011

2. THE SILVER MARKET IN 2011
• SILVER PRICES
• DEMAND
• SUPPLY
• INVESTMENT
• PRICE OUTLOOK

3. THE SILVER PRICE
60
US$/oz Average Year-on-year Intra-period
50 2010 20.19 37.6% 78.4%
1 Jan - 15 Nov 35.70 87.9% 10.9%
40
US$/oz
30
20
10
0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
Source: Thomson Reuters GFMS

4. US DOLLAR AND EURO PRICES
60
Euro/oz Average Year-on-year Intra-period
50 2010 15.17 44.7% 96.6%
1 Jan-15 Nov 25.45 77.5% 9.1%
40
US$ and Euro/oz
30
US $
20
Euro
10
0
Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
Source: Thomson Reuters GFMS

5. SILVER, GOLD & BASE METALS PRICES
180
Index (4th January 2011 = 100)
160 Silver
140
Gold
120 Lead
100
80 Zinc Copper
60
Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11
Source: Thomson Reuters GFMS

6. QUARTERLY CORRELATION OF DAILY SILVER
PRICE WITH GOLD & COPPER PRICES
1.2
1
Gold
Correlation Coefficient
0.8
0.6
0.4
0.2
Copper
0
-0.2
-0.4
Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11
Source: Thomson Reuters GFMS

7. GOLD/SILVER RATIO 2000 – 2011-TO DATE
(BASIS WEEKLY AVERAGE PRICES)
90
80
70
Average 60.5
60
50
40
30 1st Jan-15th Nov 2011 = 44.1
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Thomson Reuters GFMS

8. THE SILVER MARKET IN 2011
• PRICES
• DEMAND
• SUPPLY
• INVESTMENT
• PRICE OUTLOOK

9. WORLD SILVER DEMAND
2010 Actual 2011 Forecast
Industrial
46% Investment Industrial
Investment
26% 48%
27%
Jewellery &
Jewellery & Silverware
Silverware 20%
20%
Photography Photography
7% 6%
Source: Thomson Reuters GFMS

10. WORLD SILVER FABRICATION
FORECAST ANNUAL CHANGES: 2011 LESS 2010
30
25
20
Million ounces
15
10
5
0
-5
-10
Industrial Coins Jewellery & Photographic
Silverware
Source: Thomson Reuters GFMS

11. DEMAND SUMMARY
• Total fabrication demand forecast to rise by 4% in 2011
• After 2010’s stellar rise, growth in industrial offtake has slowed, on the
back of the tragedy in Japan, the end of stock replenishment and, more
recently, slower economic growth
• Despite higher prices, jewellery up a little in 2011, due to ongoing market
penetration in the youth demographic and substitution at the expense of
gold
• Both silverware and photographic demand maintain their long term trend
of decline, with this exacerbated by high prices
• Coin demand will rise to a new record level this year, reflecting strong
investor interest.

12. THE SILVER MARKET IN 2011
• PRICES
• DEMAND
• SUPPLY
• INVESTMENT
• PRICE OUTLOOK

13. WORLD SILVER SUPPLY
2010 Actual 2011 Forecast
Scrap
Scrap
22%
20%
Producer Producer
Hedging Hedging
5% 3%
Government Government
Sales Sales
4% 1%
Mine
Mine production
production 74%
71%
Source: Thomson Reuters GFMS

14. WORLD SILVER SUPPLY
FORECAST ANNUAL CHANGES: 2011 LESS 2010
50
40
30
20
Million ounces
10
0
-10
-20
-30
-40
-50
Mine production Net Government Net producer Scrap
Sales hedging
Source: Thomson Reuters GFMS

15. WORLD SILVER MINE PRODUCTION
900 4% increase forecast for 2011
Growth of almost 190Moz in 2002-2011F
800
700
Million ounces
600
500
400
By-product
300
200
100 Primary
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F
Source: Thomson Reuters GFMS

16. MINE PRODUCTION:
WINNERS AND LOSERS IN 2011*
16.0
12.0
8.0
Million ounces
4.0
United
States Peru Australia
0.0
Mexico China Russia
-4.0
-8.0
-12.0
* Figures represent year-on-year change, i.e. 2011 less 2010
Source: Thomson Reuters GFMS

17. OUTSTANDING DELTA ADJUSTED PRODUCERS
HEDGE POSITION
140
120
100
Million ounces
80
60
40
20
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F
Source: Thomson Reuters GFMS

18. SUPPLY SUMMARY
• Total supply forecast to be marginally higher year-on-year
• Mine production expected to rise by 31Moz or 4% in 2011, driven by a
strong project pipeline, much higher precious metal prices and a healthy
performance by the base metals sector
• Producer hedging will remain an important source of supply in 2011,
albeit slightly lower year-on-year
• Scrap supply forecast to rise by 20Moz or 9% in 2011, despite ongoing
declines from the photographic sector
• Government sales largely unpredictable but estimated to have fallen
sharply in 2011 to-date.

19. THE SILVER MARKET IN 2011
• PRICES
• DEMAND
• SUPPLY
• INVESTMENT
• PRICE OUTLOOK

20. FROM “DEFICIT” TO “SURPLUS”
1200
1100
SUPPLY
(mine production + scrap)
1000
Million ounces
900
800
700 DEMAND
(fabrication excluding coins)
600
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F
Source: Thomson Reuters GFMS

21. WORLD SILVER INVESTMENT* AND VALUE
300 12
Investment Value
250 10
200 8
US$ Billions
Million ounces
150 6
100 4
50 2
- 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F
*World Investment is the sum of implied net investment and coins & medals
Source: Thomson Reuters GFMS

22. SILVER ETF HOLDINGS
700 577Moz at end-October 2011, down by
iShare 23Moz from end-2010
600 ZKB
ETF Securities*
500
Million ounces
Other**
400
300
200
100
0
2006 2007 2008 2009 2010 2011
*Includes ETFS London, Australia, NYSE, Glitter and WITE ** Includes Julius Baer, Mitsubishi, Sprott, Claymore, Central Fund
of Canada, Silver Bullion Trust, DB Physical Silver, iShare ETC, Source: Respective issuers

23. INVESTORS’* NET POSITIONS IN COMEX SILVER FUTURES
90 5000
Comex Settlement Price
Net positions (contracts, thousand)
80
4000
70
60
3000
Cents/oz
50
2000
40
30
1000
20
10 0
2005 2006 2007 2008 2009 2010 2011
* non-commercial & non-reportable net positions in futures taken as proxy for investors’ positions; Source: CFTC

24. MONTHLY CHANGES IN SILVER INVESTMENT
150
Coins*
100
50
Million ounces
0
ETFs
-50
-100
Comex
-150
-200
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11
*Excludes medals & some coins Source: Thomson Reuters GFMS

25. INVESTMENT SUMMARY
• Investor activity the main factor behind rally in price to $50/oz in late April
and sharp corrections in early May and late September
• Silver benefits from gains in gold, with similar ‘precious metal’ motivations
at work, namely the sovereign debt crisis, inflation fears, loose monetary
policies, weak US dollar etc.
• Copper also an influence, with silver often regarded as an ‘industrial
metal’; lately therefore the white metal facing downside pressure, given
increasingly bearish economic outlook
• For some, silver is a more ‘economical’ alternative to gold (~45 x lower
unit price)
• Silver’s greater volatility and trading range than gold makes it attractive to
certain investors.

26. THE SILVER MARKET IN 2011
• PRICES
• DEMAND
• SUPPLY
• INVESTMENT
• PRICE OUTLOOK

27. PRICE OUTLOOK
Negatives:
• Mine production continues to grow (+190Moz in 2002-2011)
• Ongoing secular decline in photography (though mainly offset by lower photo scrap) and silverware
• Sovereign debt concerns and liquidity constraints could hit ‘real economy’ and industrial demand
• Large and growing fundamental market surplus (+/- 230 Moz forecast for 2011)
Positives:
• Investor interest remains strong due to favourable financial backdrop and in spite of two major sell-offs
this year
• Underlying secular growth in industrial demand continues, with much of this relatively price-insensitive,
particularly in the short-run
• Little threat to prices from higher government sales or even gains in scrap supply
Price forecasts:
• We now forecast an average price of $35.66 in 2011 (1st Jan - 15th Nov average $35.70).
Our short-term forecast is that through to year-end silver will trade between $31-$38.and.

28. DISCLAIMER
The information and opinions contained in this presentation have been obtained
from sources believed to be reliable, but no representation, guarantee, condition
or warranty, express or implied, is made that such information is accurate or
complete and it should not be relied upon as such. Accordingly, Reuters Ltd
accepts no liability whatsoever to the people or organizations attending this
presentation, or to any third party, in connection with the information contained in,
or any opinion set out or inferred or implied in, this presentation. This presentation
does not purport to make any recommendation or provide investment advice to
the effect that any gold related transaction is appropriate for all investment
objectives, financial situations or particular needs. Prior to making any investment
decisions investors should seek advice from their advisers on whether any part of
this presentation is appropriate to their specific circumstances. This presentation
is not, and should not be construed as, an offer or solicitation to buy or sell gold or
any gold related products. Expressions of opinion are those of Reuters Ltd only
and are subject to change without notice.